Renovation Loan Programs

A renovation loan is a mortgage that allows you to buy or refinance a home that needs work or updates, and roll the renovation costs into the loan amount. A renovation loan gives homebuyers and homeowners the funds to make necessary or desirable renovations to a home or access the credit to make those changes.

Renovation loans come in various packages, including simple personal loans or government-sponsored loans to get the job done. Depending on your credit score, location, and scope of work, different renovation loan options are available. We are happy to talk with you through which renovation loan program is best for your needs.

Why consider a Renovation Loan?

Borrowing money to renovate your home with a project that will reduce your long-term costs or increase your property’s value could be a smart move. Some renovation projects can increase your property’s value by a greater amount than what you spend on renovations. Such remodeling projects, like attic insulation, basements, bathrooms, and kitchens, count as valuable repairs that could certainly improve the value of your home.

A renovation loan could also be the right choice if the project will save you money in the long run or make your home a safer place, like roof repairs, new siding, or updated windows to keep your home weatherproof and energy-efficient.

  • With these loans, you can borrow up to 96.5% of the appraised value – based on the home’s value when the improvements or repairs are completed – to purchase (or refinance) a home and complete the work.

    Contact us for details.

  • The program offers no money down financing that covers the current value of the property, plus the cost of remodeling and repairs. It is typically intended for minor home projects, with no minimum or maximum renovation cost requirement.

    Contact us for details.

  • With a Homestyle Renovation mortgage, you can purchase a house, fix it up, or refinance your existing mortgage and receive funds to pay for the repairs, remodeling, renovations, or energy-efficient improvements.

    Contact us for details.

  • Great for borrowers in rural areas, this loan combines your home purchase and renovations into one mortgage, with up to 100% financing on the “As-Improved” value. This provides you with more options and allows you to purchase a home you love, even if it needs some work.

    Contact us for details.

Types of Renovation Loans

Step by Step

We make it easy to personalize your dream home with specialty financing. Homeowners can repair to correct habitability issues or customize with a remodel. These steps show you just how easy it is to use a renovation loan!

  1. Go under contract

    • You found your perfect house, but it needs a few updates.

  2. Choose a contractor

    • Pick your preferred contractor! They must be licensed, insured, and accepting of payment terms.

  3. Home Inspection

    • HUD Consultant inspection may be required. We will look into this together in conjunction with our renovation department.

  4. Finalize the contractor bid

    • The contractor will provide a bid for the required and desired repairs. Required repairs are based on the consultant inspection.

  5. Home Appraisal

    • An appraisal is ordered with the contractor bid to determine the future value.

  6. Close

    • Loan closes, seller is paid, and you get the keys!

  7. Renovations begin

    • Your contractor begins work and your perfect home awaits!